When the idea of a zune phone came up, I thought to myself, that it would be a dumb move.  Why you ask? because Microsoft already has a phone platform that they need to work on….Windows Mobile…..  Windows mobile needs alot of work to compete with the likes of Apple and Android.  If Microsoft comes out with a Zune phone then it will make them look like theyre just trying to get into every market.  If Microsoft is able to greatly improve windows mobile and make it a fluid OS then that would do alot more to Microsofts brand, rather then releasing a Zune phone.